The engines are running full steam ahead for Carnival Corporation, and investors are feeling the rush. The stock, trading under the ticker CCL, recently climbed to a new 52-week high, reaching levels not seen in roughly five years. This massive recovery from the depths of the travel slowdown has many shareholders asking the ultimate question: with the price up so dramatically, is it time to abandon ship and take profits?

The Tides Have Turned for Carnival

The catalyst for this latest surge is the company’s powerhouse performance in the fourth quarter of 2025. Carnival’s earnings report delivered a major surprise, posting an adjusted earnings per share of $0.34, which sailed past the consensus estimate of $0.25. The strong quarter capped a truly phenomenal year, where the full-year adjusted net income increased by over 60% compared to the previous year, surpassing the $3 billion mark.

These impressive financials are not just a flash in the pan. The company’s management has cited two major milestones that signal a long-term financial turnaround. First, they achieved investment-grade leverage metrics, a significant indicator of a healthier balance sheet. Second, and perhaps the sweetest news for long-suffering shareholders, Carnival reinstated its dividend, proposing an initial quarterly payment of $0.15 per share. This marks the first dividend payment since the start of the global health crisis and shows immense confidence in the company’s financial stability.

Booking a Bright Future

Beyond the balance sheet, the core business of cruising is seeing spectacular demand. Carnival reported that its booking volumes are at record levels, with cumulative advanced booked positions for 2026 holding steady at historic high prices. This momentum suggests that cruising has firmly cemented its reputation as a mainstream vacation alternative, one that offers an excellent travel experience at a reasonable price, even as the global economy faces some headwinds. Management is so bullish on the outlook that they are forecasting yet another year of double-digit earnings growth for the fiscal year 2026.

The Great Debate: Strong Buy or Overbought?

So, back to the question of abandoning ship. Should you sell a stock that has outperformed and reached a multiyear high?

On one hand, the consensus view among Wall Street analysts is overwhelmingly positive, with a rating of “Strong Buy.” The average price target is around $35.53, suggesting there is still room for the stock to run higher. These bulls are betting that the continued consumer demand, combined with disciplined cost management and the new dividend, will push the stock past its recent peaks.

On the other hand, a few cautionary voices suggest prudence. Some financial models indicate that the stock’s valuation metrics have become “expensive” following the incredible rally, especially when comparing them to pre-pandemic highs. Furthermore, technical analysis suggests that the stock is currently in “overbought territory,” which can sometimes precede a short-term pullback.

Ultimately, the future of Carnival depends on whether the strong consumer demand holds up. The company has done its part, proving its financial discipline and restoring the dividend. For investors, the decision is a classic one: either you trust the momentum and the analysts’ “Strong Buy” rating, or you heed the warning of an expensive valuation and secure your profits now.